Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.
PDF of Pinto Memo: https://www.autosafety.org/wp-content/uploads/import/phpq3mJ...
Fight Club "recall formula" segment: https://www.youtube.com/watch?v=q7bEkk5GHwg